Torrential rain in the US Midwest and typhoons in China have spurred the biggest rally in years in China's canola and palm oil market as investors fretted about supplies in the world's top edible oil market, traders and analysts said on Thursday. The most-active palm oil futures for delivery in January hit 5,794 yuan ($869) per tonne on Thursday, their highest in nearly two years. Prices have risen 5.8 percent this week and were on track for their best quarterly performance in six years.
Chinese edible oil markets have been pulled higher by stronger soybean prices in the United States where rains have threatened to delay the harvest, Lief Chiang, grains and oilseeds analyst at Rabobank in Shanghai said. The canola, or rapeseed oil, market rose after typhoons lashed one of the nation's top producing regions, forcing some crushers to halt output.
At least four crushing companies in Fujian Province, a major rapeseed crushing region in south-eastern China, have halted production since last week, according to consultancy Shanghai JC Intelligence Co Ltd (JCI). It did not identify the companies. Prices for the most-active January 2017 contract soared to 6,428 yuan on Thursday, the highest in a month. Prices are up 4 percent this week, and on track for one of the biggest weekly gains of the past year.
Comments
Comments are closed.